Income Tax Slabs in India for FY 2026-27

Income tax slabs are the income bands and the rate charged on each band. For FY 2026-27, India runs two systems: the new regime (the default) with lower rates and a nil band up to ₹4 lakh, and the old regime (opt-in) starting at ₹2.5 lakh but keeping deductions the new regime drops. Neither is universally cheaper – the answer depends on your income and the deductions you actually claim.

Slabs are marginal. A higher rate applies only to the income inside that band, not to your whole salary. Crossing into the 30% band does not tax your entire income at 30%.

What are the new regime tax slabs for FY 2026-27?

The new regime is the default. If you make no choice, this is how your tax is worked out. These rates apply after any standard deduction (₹75,000 for salaried taxpayers).

A 4% health and education cess applies on the tax, and a surcharge is added at higher incomes. A Section 87A rebate makes the tax nil for taxable income up to ₹12 lakh, with marginal relief just above that threshold so a small pay rise never costs more than it adds.

What are the old regime tax slabs?

The old regime is now opt-in. Its rates are higher, but it retains the exemptions and deductions – 80C, 80D, HRA, home-loan interest and others – that the new regime removes. Salaried taxpayers get a ₹50,000 standard deduction here.

Senior citizens (60 and above) get a higher nil band, and the very elderly (80 and above) higher still. The 87A rebate under the old regime covers taxable income only up to ₹5 lakh. The same 4% cess and surcharge structure applies.

Which regime is the default, and can you switch?

Since FY 2023-24 the new regime is the default. The old regime is a choice you make. Salaried taxpayers can generally pick between the two each year at filing; people with business income face tighter switching rules. Because the choice resets annually for most salaried filers, it is worth re-checking as your income and deductions change.

What about surcharge and cess?

The slab rate is not quite the final number. A 4% health and education cess is added on top of the tax under both regimes. On higher incomes, a surcharge also applies, rising in steps as taxable income climbs past set thresholds; the new regime caps its top surcharge rate below the old regime's highest tier. For most taxpayers the cess is the only add-on that bites, but anyone in the upper income bands should account for surcharge when comparing the two systems. These rates, like the slabs, are set in the Budget and can change.

How do the two regimes actually compare?

They pull in opposite directions. The new regime gives you lower rates and a broad nil band but strips out almost every deduction. The old regime charges more per band but lets you shrink taxable income through 80C, HRA and the rest.

Which one produces the lower bill is arithmetic, not opinion. Someone with large 80C and HRA claims may land lower under the old regime; someone with few deductions often lands lower under the new one. The old vs new regime calculator runs both on your actual figures.

Related NYVO guides

• Old vs New Tax Regime: How They Differ – the full comparison of the two systems, and how to tell which costs you less.
• Section 87A Rebate: How the Zero-Tax Threshold Works – why new-regime tax is nil up to ₹12 lakh even though the slabs still apply.
• Section 80C: The ₹1.5 Lakh Deduction Explained – the deduction most people weigh when comparing the two systems.

Slabs are just the frame. The rate you see is not the tax you pay until you factor in the regime, the deductions and the rebate. For FY 2026-27, start from the default and compare – the tables above are a snapshot, not the whole calculation.